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MSCI Inc. (NYSE: MSCI), a leading provider of mission critical decision support tools and services for the global investment community, today announced it has signed a licensing agreement with Hong Kong Futures Exchange Limited, a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (“HKEX”), to introduce 37 futures and options contracts in Hong Kong based on a suite of indexes in Asia and Emerging Markets.
This agreement further expands MSCI’s existing relationship with HKEX, driving increased access to innovative tools and services for the global investment industry. The agreement follows a 2019 announcement that HKEX will introduce futures contracts on the MSCI China A Index subject to regulatory approval, to serve as a key risk management tool for international investors looking to manage their A-share equity exposure.
“MSCI’s mission as a provider of tools, services and insights for the global investment industry is to help investors around the world better understand and navigate investment opportunities and risks,” said Henry Fernandez, Chairman and Chief Executive Officer at MSCI. “As we continue to see increasing demand from global investors in enhancing their risk management capabilities, we are pleased to license HKEX to use our indexes for this expansive suite of new trading and risk management tools for global investors.”
“As the global markets leader in the Asian time zone, and reflecting our unique role connecting markets and investors across the world, we are very pleased to be announcing this major agreement with MSCI,” added Charles Li, Chief Executive of HKEX. “Bringing enhanced liquidity to our markets, this builds on our stated strategy and our 2019 commitment to launch MSCI China A index futures in Hong Kong. It comes at a time when Hong Kong’s derivatives market is going from strength to strength and represents another significant development in continuing to build the breadth, depth and attractiveness of Hong Kong’s vibrant financial markets.”
MSCI intends to continue to license the MSCI Singapore Index to the Singapore Exchange (“SGX”) for a listed futures contract, in addition to allowing HKEX to list a contract on the index. The license to SGX for all other MSCI indexes will expire in early 2021.
All planned HKEX futures and options contracts remain subject to regulatory approval, and the launch will be determined based on prevailing market conditions.
